Insurance Normal People Don't Get

July 20, 2015

One of the fun things about doing Insurance Coverage work is that it occasionally shows you things you never would have even thought about. 

 

E.G. Insurance for being abducted by aliens. ET-style aliens from Mars with flying saucers aliens. Because you can apparently get insurance for that and allegedly more than 37,000 policies have been sold. It even has a wiki page.

 

This came to mind bcause the Insurance Regulatory Law blog recently did a list of strange things you can insure. Most of them are relatively normal things that you just do not think about, like golf carts. But some of them are eye-opening.

 

One of the more controversial on the list is ransom insurance. Because that's a real thing. Britain was at least considering banning ransom payments to terrorist groups (although terrorist kidnappings are apparently excluded anyway. It's bad public policy to pay terrorists ransoms or something.) The existence of ransom insurance speaks to the lawless state of parts of the world. I suspect most Americans try to pretend things like that just don't happen to us anymore.

 

On a lighter note, I've always wondered how that UFO insurance works. How do they determine whether you've been abducted or not? Since (on information and belief) nobody has actually been abducted by aliens, does it pay if you think you've been abducted by aliens? Does it only cover some kinds of aliens (i.e. only in-solar-system aliens)? Is it ransom insurance, but for paying off the Martians (assuming they want money, a questionable proposition)? And how do you underwrite the off chance martians will abduct an insured?) Or is (as I strongly suspect) coverage illusory and the whole thing a post-modern scam? 

 

Also, according to GEICO, you can get coverage for "ghosts, poltergeists and other abnormal phenomena." 

 

Thus far, I have never encountered one of these in a professional capacity.

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